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parent subsidiary associate (in term of ‘000)
Nca
ppe 637.50 555
investment in sub 386.25
investment in associate 142.5Ca
inventories 278.75 107.5
trade receivable 130 27.5
cash and bank 25 12.5equity and liabilities
ordinary share 500 250
p/loss 960 205NCL
loan – 100
CL
trade payable 52.5 55
bank overdraft – 62.5
dividend Payable 87.50 30Parent acquire 90% of ordinary share of subsidary on 30 june 2008 when subsidiary retained earning RM 62500
Addtional information:
parent has not yet accounted for the share dividend receivable from subsidiary. Subsidiary declared dividend of RM 30000 on the 30 june 2012 and included in the effect(subsidiary ltd) financial statements.I want to ask how to treat the additional information regards to dividend receivable?
In the parent’s own accounting records:
Dr Receivables 27,000 (90% x 30,000)
Cr Investment Income 27,000When calculating consolidated retained earnings, the parent’s own retained earnings must be increased by that 27,000
The intra-group dividend is not included in the consolidated statement of profit or loss
OK?
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